Tom's Take: "This Is What Deflation Looks Like | Beat the Press"

"There was really no basis for fearing the sort of destructive inflation the economy saw at the start of the Great Depression. Wages and prices are too sticky today." — Dean Baker This Is What Deflation Looks Like | Beat the Press.

That's not my reading of the reason. The Fed actions were way too much "pushing on a string." The fiscal measures were way too little, too late, and targeted wrong. Had the government gone in the right direction to a fault, we would have had a superheated economy, including quickly rising, even uncontrolled, inflation, in no time. That was more of what I expected they'd do rather than erring so terribly on the austerity side of things.

That said, I'm sure Dean Baker believes it was too little also and still is.

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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